Allowance to Reduce Deferred Tax Asset to Expected Realizable Value Benefit Due to Loss Carryback Benefit Due to Loss Carryforward Deferred Tax Asset Deferred Tax Liability Income Tax Expense Income Tax Payable Income Tax Refund Receivable No Entry

Exercise 19-23 (Part Level Submission) Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Pretax Income (Loss) Year 2015 2016 2017 2018 $132,000 89,000 (263,000 ) 227,000 Tax Rate 34 % 34 % 38 % 38 % The tax rates listed were all enacted by the beginning of 2015 Your answer is correct. Prepare the journal entries for the years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryback and carryforward, assuming that at the end of 2017 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2015 Income Tax Expense 44880 Income Tax Payable 44880 2016 Income Tax Expense 30260 Income Tax Payable 30260 2017 Income Tax Refund Receivable 75140 Deferred Tax Asset 15960 Benefit Due to Loss Carryback 75140 Benefit Due to Loss Carryforward 15960 2018 Income Tax Expense 86260 Deferred Tax Asset 15960 Income Tax Payable 70300 Assuming that at the end of 2017 the benefits of the loss carryforward are judged more likely than not to be realized in the future, prepare the income tax section of the 2017 income statement, beginning with the line "Operating loss before income taxes." (Enter loss using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45) Pina Inc. Income Statement (Partial) SHOW LIST OF ACCOUNTS